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| Public Act 097-0993 | ||||
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The State Comptroller Act is amended by changing | ||||
Section 9.03 as follows:
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(15 ILCS 405/9.03) (from Ch. 15, par. 209.03)
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Sec. 9.03. Direct deposit of State payments. | ||||
(a) The Comptroller, with the
approval of the State | ||||
Treasurer, may provide by rule or regulation for the
direct | ||||
deposit of any payment lawfully payable from the State Treasury | ||||
and in
accordance with federal banking regulations including | ||||
but not limited to
payments to (i) persons paid from personal | ||||
services, (ii)
persons receiving benefit payments from the | ||||
Comptroller under the State pension
systems, (iii) individuals | ||||
who receive assistance under Articles III, IV,
and VI of the | ||||
Illinois Public Aid Code, (iv) providers of services under
the | ||||
Mental Health and Developmental Disabilities
Administrative | ||||
Act, (v)
providers of community-based mental health services, | ||||
and (vi) providers of
services under programs administered by | ||||
the State Board of Education, in the
accounts of those persons | ||||
or entities maintained at a bank, savings and loan
association, | ||||
or credit
union, where authorized by the payee. The Comptroller | ||||
also may deposit
public aid payments for individuals who | ||||
receive assistance under Articles
III, IV, VI, and X of the | ||
Illinois Public Aid Code directly into an
electronic benefits | ||
transfer account in a financial institution approved by
the | ||
State Treasurer as prescribed by the Illinois Department of | ||
Human
Services
and in accordance with the rules and regulations | ||
of that Department and the
rules and regulations adopted by the | ||
Comptroller and the State Treasurer.
The Comptroller, with the | ||
approval of the State Treasurer, may provide by
rule for the | ||
electronic direct deposit of payments to public agencies and | ||
any
other payee of the State. The electronic direct
deposits | ||
may be made to the designated account in those financial | ||
institutions
specified in this Section for the direct deposit | ||
of payments. Within 6 months
after the effective date of this | ||
amendatory Act of 1994, the Comptroller shall
establish a pilot | ||
program for the electronic direct deposit of payments to
local | ||
school districts, municipalities, and units of local | ||
government.
The payments may be made without the use of the | ||
voucher-warrant system,
provided that documentation of | ||
approval by the Treasurer of each group of
payments made by | ||
direct deposit shall be retained by the Comptroller. The
form | ||
and method of the Treasurer's approval shall be established by | ||
the
rules or regulations adopted by the Comptroller under this | ||
Section. | ||
(b) Except as provided in subsection (b-5), all All State | ||
payments for an employee's payroll or an employee's expense | ||
reimbursement must be made through direct deposit. It is the | ||
responsibility of the paying State agency to ensure compliance | ||
with this mandate. If a State agency pays an employee's payroll | ||
or an employee's expense reimbursement without using direct | ||
deposit, the Comptroller may charge that employee a processing | ||
fee of $2.50 per paper warrant. The processing fee may be | ||
withheld from the employee's payment or reimbursement. The | ||
amount collected from the fee shall be deposited into the | ||
Comptroller's Administrative Fund. | ||
(b-5) If an employee wants their payments deposited into a | ||
secure check account, the employee must submit a direct deposit | ||
form to the paying State agency for their payroll or to the | ||
Comptroller for their expense reimbursements. Upon acceptance | ||
of the direct deposit form, the Comptroller shall disburse | ||
those funds to the secure check account. For the purposes of | ||
this Section, "secure check account" means an account | ||
established with a financial institution for the employee that | ||
allows the dispensing of the funds in the account through a | ||
third party who dispenses to the employee a paper check. | ||
(c) All State payments to a vendor that exceed the | ||
allowable limit of paper warrants in a fiscal year, by the same | ||
agency, must be made through direct deposit. It is the | ||
responsibility of the paying State agency to ensure compliance | ||
with this mandate. If a State agency pays a vendor more times | ||
than the allowable limit in a single fiscal year without using | ||
direct deposit, the Comptroller may charge the vendor a | ||
processing fee of $2.50 per paper warrant. The processing fee | ||
may be withheld from the vendor's payment. The amount collected | ||
from the processing fee shall be deposited into the | ||
Comptroller's Administrative Fund. The Office of the | ||
Comptroller shall define "allowable limit" in the | ||
Comptroller's Statewide Accounting Management System (SAMS) | ||
manual, except that the allowable limit shall not be less than | ||
30 paper warrants. The Office of the Comptroller shall also | ||
provide reasonable notice to all State agencies of the | ||
allowable limit of paper warrants. | ||
(d) State employees covered by provisions in collective | ||
bargaining agreements that do not require direct deposit of | ||
paychecks are exempt from this mandate. No later than 60 days | ||
after the effective date of this amendatory Act of the 97th | ||
General Assembly, all State agencies must provide to the Office | ||
of the Comptroller a list of employees that are exempt under | ||
this subsection (d) from the direct deposit mandate. In | ||
addition, a State employee or vendor may file a hardship | ||
petition with the Office of the Comptroller requesting an | ||
exemption from the direct deposit mandate under this Section. A | ||
hardship petition shall be made available for download on the | ||
Comptroller's official Internet website. | ||
(e) Notwithstanding any provision of law to the contrary, | ||
the direct deposit of State payments under this Section for an | ||
employee's payroll, an employee's expense reimbursement, or a | ||
State vendor's payment does not authorize the State to | ||
automatically withdraw funds from those accounts. | ||
(f) For the purposes of this Section, "vendor" means a | ||
non-governmental entity with a taxpayer identification number | ||
issued by the Social Security Administration or Internal | ||
Revenue Service that receives payments through the | ||
Comptroller's commercial system. The term does not include | ||
State agencies. | ||
(g) The requirements of this Section do not apply to the | ||
legislative or judicial branches of State government.
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(Source: P.A. 97-348, eff. 8-12-11.)
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Section 99. Effective date. This Act takes effect 30 days | ||
after becoming law. | ||